Nigeria’s Federal Government (FG) saw a 15% drop in deficit spending, falling to N908.13 billion in November 2024 from N1.07 trillion in October, according to the Central Bank of Nigeria (CBN).
The latest figures were published in the CBN’s November Economic Report, revealing that delays in capital releases were the main reason for the decline.
What the CBN Report Says
The CBN report, released on Friday, February 14, 2025, highlighted key fiscal trends:
✅ The FG’s overall deficit contracted by 15% compared to the previous month.
✅ Despite this, the deficit was 18.72% higher than projected.
✅ The decline in spending was mainly due to lower capital expenditure.
Revenue and Expenditure Trends
The Federal Government’s retained revenue increased to N820 billion, driven by:
- Higher VAT collections from the VAT pool.
- Exchange rate gains boosting government earnings.
On the other hand, total expenditure dropped to N1.7 trillion, reflecting the lower capital spending recorded during the review period.
What This Means for the Economy
The reduction in deficit spending suggests government efforts to control expenditure, but the delay in capital projects could impact economic growth.
Experts believe that faster capital releases could help sustain growth while maintaining fiscal balance.
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